1. Analyzing Business Markets7
Analyzing Business Markets
Marketing Management, 13th ed

2. Chapter Questions
What is the business market, and how does it differ from the consumer market?
What buying situations do organizational buyers face?
Who participates in the business-to-business buying process?
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3. Chapter Questions How do business buyers make their decisions?
How can companies build strong relationships with business customers?
How do institutional buyers and government agencies do their buying?
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4. CISCO Targets Businesses
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5. What is Organizational Buying?
Organizational buying refers to the decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.
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6. Top Business Marketing Challenges
Expand understanding of customer needs
Compete globally as China and India reshape markets
Master analytical tools and improve quantitative skills
Reinstate innovation as an engine of growth
Create new organizational models and linkages
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7. Characteristics of Business Markets
Fewer, larger buyers
Close supplier-customer relationships
Professional purchasing
Many buying influences
Multiple sales calls
Derived demand
Inelastic demand
Fluctuating demand
Geographically concentrated buyers
Direct purchasing
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8. Buying Situation Straight rebuy Modified rebuy New task
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9. Systems Buying and Selling
Turnkey solution
desired;
bids solicited
System
subcomponents
assembled
Prime
contractors
Second-tier
contractors
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10. The Buying Center Initiators Users Influencers Deciders Approvers
Buyers
Gatekeepers
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11. Of Concern to Business Marketers
Who are the major decision participants?
What decisions do they influence?
What is their level of influence?
What evaluation criteria do they use?
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12. Sales Strategies Key Buying Influencers Small Sellers Multilevel
In-depth
Selling
Large Sellers
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13. Stages in the Buying Process: Buyphases
Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order-routine specification
Performance review
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14. Table 7.2 Buygrid Framework
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15. Forms of Electronic Marketplaces
Catalog sites
Vertical markets
Pure play auction sites
Spot markets
Private exchanges
Barter markets
Buying alliances
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16. Methods of e-Procurement
Websites organized using vertical hubs
Websites organized using functional hubs
Direct extranet links to major suppliers
Buying alliances
Company buying sites
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17. Table 7.3 Vendor Analysis
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18. Handling Price-Oriented Customers
Limit quantity purchased
Allow no refunds
Make no adjustments
Provide no services
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19. Methods for Researching Customer Value
Internal engineering assessment
Field value-in-use assessment
Focus-group value assessment
Direct survey questions
Conjoint analysis
Benchmarks
Compositional approach
Importance ratings
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20. Order Routine Specification
Stockless
purchase plans
Vendor-managed
inventory
Video icon links to video snippet on Hasbro’s meeting the inventory needs of its retail customers.
Continuous
replenishment
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21. Establishing Corporate Trust and Credibility
Expertise
Trustworthiness
Likeability
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22. Figure 7.1 Trust Dimensions
Transparent
Cooperating
Design
Product/Service
Quality
Product
Comparison
Incentive
Supply Chain
Partnering
Pervasive
Advocacy
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23. Factors Affecting Buyer-Supplier Relationships
Availability of
alternatives
Importance of
supply
Complexity of
supply
Supply market
dynamism
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24. Categories of Buyer-Seller Relationships
Basic buying and selling
Bare bones
Contractual transaction
Customer supply
Cooperative systems
Collaborative
Mutually adaptive
Customer is king
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25. What is Opportunism?
Opportunism is some form of cheating or undersupply relative to an implicit or explicit contract.
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26. Aramark Successfully Services Institutional and Government Markets
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27. Marketing Debate how different is B-to-B marketing? Take a position:
Business-to-business marketing
requires a special, unique set of marketing
concepts and principles. or
2. Business-to-business marketing is really
not that different and the basic marketing
principles apply.
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28. Marketing Discussion Consider some of the consumer
behavior topics from Chapter 6.
How might you apply them to business-
to-business settings?
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